Monday, September 6, 2010
Why Infrastructure Spending Is No Stimulus
The President's Labor Day announcement of infrastructure spending will not provide the kind of spending needed to boost the economy because such projects take years implement. Any infrastructure plan developed on the basis of new spending will not be built for at least a year so any immediate impact is impossible. It will not help create jobs, the money will not be spent until sometime in 2011, and there are already billions in infrastructure spending in the works so any new projects will be years in development. The one sure thing the President could do to help spark the economy in the short-term he refuses to consider; Give working Americans a temporary payroll tax holiday. Let people keep the taxes withheld from their paychecks. It puts extra money in people's hands immediately. It can be implemented in two or three weeks and it will boost consumer consumption, which is the real key to our economic recovery. Consumer spending, not government spending is what is needed. That's would be a real stimulus package.